Quantization and distillation don't simply create a smaller version of an LLM. These optimization processes alter the model's behavior to the point where it becomes a new entity—a "cousin." It may be legible and functional, but it will not produce the same outputs as the original.
To decide between a deterministic workflow and a flexible agent, analyze the current manual process. If the task involves numerous 'if-then' conditions and decision points, an agentic system is likely the more maintainable and effective solution.
Benchmarking reasoning models revealed no clear correlation between the level of reasoning and an LLM's performance. In fact, even when there is a slight accuracy gain (1-2%), it often comes with a significant cost increase, making it an inefficient trade-off.
An AI agent uses an LLM with tools, giving it agency to decide its next action. In contrast, a workflow is a predefined, deterministic path where the LLM's actions are forced. Most production AI systems are actually workflows, not true agents.
Purely agentic systems can be unpredictable. A hybrid approach, like OpenAI's Deep Research forcing a clarifying question, inserts a deterministic workflow step (a "speed bump") before unleashing the agent. This mitigates risk, reduces errors, and ensures alignment before costly computation.
Simply having a large context window is insufficient. Models may fail to "see" or recall specific facts embedded deep within the context, a phenomenon exposed by "needle in the haystack" evaluations. Effective reasoning capability across the entire window is a separate, critical factor.
Autoencoding models (e.g., BERT) are "readers" that fill in blanks, while autoregressive models (e.g., GPT) are "writers." For non-generative tasks like classification, a tiny autoencoding model can match the performance of a massive autoregressive one, offering huge efficiency gains.
Use a tiered approach for model selection based on parameter count. Models under 10B are for simple tasks like RAG. The 10-100B range is the sweet spot for agentic systems. Models over 100B parameters are for complex, multi-lingual, enterprise-wide deployments.